PHILADELPHIA, April 5 /PRNewswire-FirstCall/ -- Pennsylvania Real Estate
Investment Trust (NYSE: PEI) today announced that it has acquired Beaver
Valley Mall, a 1.1 million square foot enclosed regional mall in Beaver
County, Pennsylvania, 15 miles north of the Pittsburgh International Airport.
The property is being acquired from the California Public Employees'
Retirement System (CalPers) for $61.3 million. The acquisition price equates
to a capitalization rate of 11.1% based on projected 2002 net operating
income. To finance the purchase PREIT has entered into a $48.0 million 10-year
mortgage from CS First Boston, Column Financial, at an interest rate of
approximately 7.4%. The balance will be drawn from the $175 million revolving
portion of the Company's bank credit facility.
The mall is anchored by Kaufmann's, JC Penney, Sears and Boscov's and
contains approximately 323,000 square feet of in-line mall stores and 109,000
square feet of convenience stores and outparcels. A strong roster of well-
known tenants features American Eagle Outfitters, Gadzooks and Victoria's
Secret. The property occupies approximately 136.7 acres and is 91.5% occupied.
Total annual sales for 2001 were approximately $123 million and same store
sales were $264 per square foot in 2001.
"We are very pleased with the purchase of Beaver Valley Mall," commented
Ronald Rubin, Chairman and Chief Executive Officer of PREIT. "With an
excellent regional location, strong demographics and recognized national
tenants, Beaver Valley Mall fits the acquisition criteria of our growth
strategy. Additionally, the property's sales productivity and distinctive
market position are consistent with the quality of our retail properties."
Situated 35 miles northwest of the Pittsburgh central business district
the mall's trade area has strong demographics with an average household income
of approximately $45,600. Beaver Valley Mall enjoys excellent visibility from
Route 18 South with signage on Route 60. Route 60 is the primary north-south
highway providing direct access to Pittsburgh to the south and to Interstate
Highway 80 to the north. PREIT-RUBIN, Inc., the Company's management
subsidiary, has redeveloped, managed and leased the property for the Lend
Lease Corporation, an integrated global real estate organization operating in
41 countries on six continents, on behalf of CalPers since 1990. The mall was
originally built in 1970 and was redeveloped in 1991 by PREIT-RUBIN.
The transaction is expected to be immediately accretive to funds from
operations (FFO). The Company noted that its March 11, 2002 FFO guidance of
$2.73 to $2.77 per share for the calendar year ending December 31, 2002
incorporated the anticipated impact of this acquisition.
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the
first equity REITs in the U.S., has a primary investment focus on shopping
centers (approximately 12.0 million square feet) and apartment communities
(approximately 7,242 units) located primarily in the eastern United States.
The Company's portfolio currently consists of 46 properties in 10 states. In
addition, there are 4 retail properties under development, which PREIT expects
will add approximately 1.3 million square feet to its portfolio. PREIT is
headquartered in Philadelphia, Pennsylvania.
The matters discussed in this report, as well as news releases issued from
time to time by PREIT include use of forward-looking terminology such as
"may," "will," "should," "expect," "anticipate," "estimate," "plan," or
"continue" or the negative thereof or other variations thereon, or comparable
terminology which constitute "forward-looking statements." Such forward-
looking statements (including without limitation, information concerning
PREIT's continuing dividend levels, planned acquisition, development and
divestiture activities, short- and long-term liquidity position, ability to
raise capital through public and private offerings of debt and/or equity
securities, availability of adequate funds at reasonable cost, revenues and
operating expenses for some or all of the properties, leasing activities,
occupancy rates, changes in local market conditions or other competitive
factors) involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of PREIT's results
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. PREIT
disclaims any obligation to update any such factors or to publicly announce
the result of any revisions to any of the forward-looking statements contained
herein to reflect future events or developments.
** A supplemental quarterly financial package **is available on the
Company's web site at http://www.preit.com .
SOURCE Pennsylvania Real Estate Investment Trust
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Related links:
http://www.preit.com
CONTACT:
Edward A. Glickman, Executive Vice President
and CFO of Pennsylvania Real Estate Investment Trust,
+1-215-875-0700, or General, Joe Calabrese, +1-212-445-8434, or
Analysts, Georganne Palffy, +1-312-266-7800, or Media, Judith
Sylk-Siegel, +1-212-445-8431, all of FRB Weber Shandwick
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